To laugh or to cry?

A voluble member of parliament scored another bull when he accused the Governor of the Central Bank of divided loyalties because he had worked for the IMF, for which he earned a pension from IMF. It may be that he earns a pension from the IMF. But those who work as Directors/Alternate Executive Directors work for their countries or regions and not for the Fund. They are appointed by authorities in their countries and are recalled by them. They are remunerated by IMF. Poor countries find it hard to find the means to afford the high costs of travel to and from Washington and of living in Washington D.C. (I recall when, a few decades back, the Permanent Mission of an African nation to the United Nations found it difficult to obtain accommodation in New York City because it had failed to pay rent on the premises it occupied on 45^th Street East in Manhattan.) While pay by the IMF to Directors is not an ideal solution, it is the most practicable solution. (However, recall that directors of companies are paid by the companies that they direct.

Regularly, they are not accused of loyalties divided between shareholders and the management of the company.) The allegations made by the MP that the present governor or those in the past or to come, in similar circumstances, have allegiances divided between the home government and IMF are baseless. Their allegiance is always to their home office. Pension payments by the Fund are governed by statutes made by the Board of Directors and approved by their governments and are not variable at anybody’s fancy.

That MP and others must realize that a little knowledge is a dangerous thing with which they can smear the good name of public servants. Some reading beyond the Order Paper for the day is unlikely to harm MPs’ unsullied intellects.

Former Central Banker